A123 Systems Signs Multi-Year Li-ion Battery System Supply Agreement With Fisker Automotive, Intends to Invest Up To $23M in Fisker
14 January 2010
A123 Systems has entered a battery supply agreement with Fisker Automotive to supply battery systems for the Fisker Karma Plug-in Hybrid Electric Vehicle (PHEV). The Karma—an extended-range electric vehicle—is scheduled to be launched in late 2010.
Fisker had signed a letter of intent for a potential long-term battery supply agreement with Ener1’s EnerDel in May 2009 (earlier post), and Fisker CEO Henrik Fisker had said in December 2009 at the LA Auto Show that the company would announce a battery supplier by the end of the year. Yesterday, Ener1 filed a form 8-K (Report of unscheduled material events or corporate changes) with the SEC stating that the two companies had ceased discussions with respect to the feasibility of a business relationship concerning the Fisker Karma vehicle program.
The multi-year agreement provides that A123 is the selected battery system supplier for the Fisker Karma. A123 plans to manufacture the cells and systems at its Livonia, Mich. facility with production slated to commence later this year.
Under the new agreement, A123 Systems will also collaborate on Fisker’s Project Nina platform—its next-generation of lower-cost plug-in hybrids—with the intent of having A123 supply batteries for that vehicle based on meeting the automaker’s performance and delivery requirements. Project Nina is expected to launch in 2012.
Fisker Automotive selected A123 because of the company’s ability to meet our performance needs and rapidly scale to our production volume. Fisker is committed to developing environmentally friendly cars that don’t sacrifice style or performance. A123’s technology will ensure the Karma delivers.
—Henrik Fisker, Chief Executive Officer of Fisker Automotive
The Fisker Karma is expected to have a range of 50 full-electric miles on a charge and a total range of 300 miles with an on-board generator turned by a 2.0L direct injection Ecotec gasoline engine from GM (earlier post). The Karma features 403 hp (300 kW) and is designed to go from 0 to 60 mph in about six seconds, reaching a top speed of 125 mph (201 km/h).
In September 2009, the US Department of Energy awarded a $528.7-million conditional loan to Fisker Automotive for the development of two lines of plug-in hybrids—the Karma and the new Project Nina vehicle—by 2016. (Earlier post.)
Investment. In addition to entering into the supply agreement, A123 also announced its intent to invest up to $23 million in Fisker Automotive’s current funding round in order to establish a strategic relationship with the car company.
The contemplated investment would consist of $13 million in cash and $10 million in A123 common stock and would be subject to the completion of certain terms and conditions. This investment would closely align the interests of both companies in delivering innovative technologies for safe and reliable PHEVs. This investment would also allow Fisker Automotive and A123 to work closely together to optimize the performance of future vehicles, they said.
Let's demand that $770 million US in FK/A123 loans/grants spin-off more than a few $89,000 cars.
Posted by: kelly | 14 January 2010 at 09:15 AM
I love it. Hopefully the Karma will be able to use a level 3 charger (50k watt) so that it can be charged in less than 15 minutes. That will make it even less likely that you will ever need to do more than 2 regular gasoline fill ups per year.
Just read that the Volt will also come in a (100 mile?) all EV version. (1) Fisker should do the same for their Karma. Some countries only give tax credits to pure EVs so it would facilitate sales. Also converting a series PHEV to a pure EV hardly requires any development.
1) http://green.autoblog.com/2010/01/14/report-gm-to-build-battery-only-volt-lutz-acknowledges-range-d/
Posted by: Account Deleted | 14 January 2010 at 10:13 AM
Henrik, a 100m AER Volt would need double the battery size they are currently using. Obviously they (LG) have improved greatly on their storage capacity if they're going to a 100m EV.
Glad to see that Fisker is still in the game. Perfectly sound business plan to introduce the high end product first and then go to a lower cost vehicle (Nina.) And working with A123 and GM should prove positive as well. That is a lot of money for a new car company. I guess Mr. Fisker has connections.
Posted by: sulleny | 14 January 2010 at 01:59 PM
Sulleny I think you misunderstood me. GM will do a pure EV version of the Volt without the range extender. All they need to do is to replace the range extender with an extra battery with similar weight and upload some new control software and make some changes to the cooling systems and the grill and then GM has a vehicle that can compete with the Nissan’s Leaf. That is big news in my opinion and GM should be ready to produce in volume at the time Nissan is ready for volume production with the Leaf (and Ford with the EV focus).
I totally agree with you that EVs and PHEVs to begin with will be most easy to market to the upper half of the consumer spectra. People that can afford luxury cars or well off families that will buy a 30000 USD EV with 100 miles range such as the Leaf as their second or third household vehicle. Also agree that it is smart of Fisker to stick with suppliers that can deliver in volume. Amazing to see that A123 actually had to pay Fisker to get the deal but A123 needs this deal more right now than Fisker need A123 so this is why.
Posted by: Account Deleted | 14 January 2010 at 03:00 PM
Mr. Fisker has quite the reputation as a car designer. He was responsible for the design of the BMW Z8, the Aston Martin Vantage, and the Aston Martin DB9. His business plan, IMO, is very sound:
-use design to justify a PROFITABLE price point for a PHEV.
-roll said profits into increasing manufacturing capacity for batteries and range extenders
-work down the price ladder constantly increasing scale and decreasing costs while remaining profitable the whole time.
Posted by: GreenPlease | 15 January 2010 at 03:34 AM
BTW, I think one of the luxuries of the Karma will be the fact that it has no transmission. Power delivery will be very linear. Though 0-60 may not seem impressive to most auto enthusiasts, the way in which power is delivered through the electric motors will make the car "feel" much much faster. Having peak torque from ~1rpm is a very nice feature.
Posted by: GreenPlease | 15 January 2010 at 03:37 AM
"A123 needs this deal more right now than Fisker need(s) A123 so this is why."
I believe that this is accurate. A123 wants to expand capacity and they need the firm orders under contract. Fisker needs infusions of capital on a regular basis. I would say that Fisker made a good deal for themselves here.
Posted by: SJC | 15 January 2010 at 12:44 PM
"Never give a sucker an even break",
"Take the Money and run" and
"This way to the Egress" constantly seem to emanate from Fisker.
ENERDEL steps up, puts in money and then realizes it folly and is hustled to the Egress.
Next sucker please.
A123 steps up, puts in money, and then....
Posted by: Stan Peterson | 15 January 2010 at 03:01 PM
"..Never give a sucker an even break.." raises $528.7 million taxpayer loan questions about a car company that has never produced a powertrain.
Posted by: kelly | 16 January 2010 at 06:16 AM
Can anyone confirm that Quantum Fuel Systems Technologies Worldwide, Inc. is at 17872 Cartwright Road, Irvine, CA?
No address is listed on their website.
Wiki says that "Quantum co-founded Fisker Automotive (www.fiskerautomotive.com), and developed proprietary high performance plug-in-hybrid powertrain system (Q-Drive) that powers Fisker Karma and Karma S automobiles."
It's interesting that the firms appear only a mile apart, with ~100 employees, and plod along with $528.7 million in taxpayer loans.
Posted by: kelly | 16 January 2010 at 09:06 AM
Volt is a far more substantial offering than a Leaf which will sell for nearly the same price. American will want the range extender until there are more AER miles and charge options.
A123 at least makes a product one can put their hands on. They have $250M from fed and 100M in tax credits for their Michigan plant. If Chrysler sticks around that would make a realistic JV.
Yet to see a Karma actually produced. Let's hope it is not a $$ black hole or worse - a wormhole to Mr. Fisker's offshore account.
Posted by: sulleny | 16 January 2010 at 02:20 PM
The Volt is a different product than is the Leaf, it serves a different portion of the market. For a while consumers will have three vehicle choices, ICEs, PHEVs, and EVs.
There will be small initial markets for PHEVs and EVs. Likely as much demand for both as manufacturers can fill, especially as gas prices resume their march upward.
Some people will be totally satisfied with the limited 100 mile range of the Leaf. I know people who are quite happy with homebrew EVs which have only a 30 mile range. Their second cars are ICE models which get used when two cars are needed or a long trip is scheduled. They choose to drive their EVs for their daily <30 mile RT commutes or they have arranged to plug in at work.
Others who want to do most of their driving with electricity but have a greater/more frequent need to exceed the 100 mile range will purchase PHEVs. I would expect PHEVs to continue to be manufactured long after the ICE has disappeared from showroom floors.
Posted by: Bob Wallace | 19 January 2010 at 03:27 AM